Broker snap: UBS upgrades N. Brown to buy

27th Jan 2012 10:18

Shares of internet and catalogue home shopping specialist N. Brown were given a lift on Friday morning after UBS upgraded its rating on the stock from neutral to buy."With almost 50% of sales now generated on the internet, significant exposure to a niche, but rapidly growing, oversize clothing market, international growth opportunities and trial UK rollout, N. Brown should continue to outperform its retail peers," analysts at the Swiss bank said.The broker said that the firm's flexibility to generate sales and ongoing income from its credit offering should be valued at a premium rather than a discount to the sector.Nevertheless, UBS says it values N. Brown in line with the sector average price-to-earnings (calendar year ending 2012) multiple of 10.4 which equates to a target price of 280p, which is unchanged.Shares were up 3.67% at 239.9p in morning trade.BC